The role of green innovations in attracting international investment within ecological markets

Authors

  • Aigul Monolbaeva Kyrgyz National University named after Jusup Balasagyn
  • Zhe Liu Kyrgyz National University named after Jusup Balasagyn
  • Jian Huang Kyrgyz National University named after Jusup Balasagyn
  • Svitlana Rassadnykova International Humanitarian University
  • Klymash Nataliia State University of Trade and Economics

DOI:

https://doi.org/10.23925/2179-3565.2026v17i1p134-150

Keywords:

Photovoltaic megaparks, Green building materials, ESG scoring platforms, Monitoring, Reporting and Verification systems, Smart grid energy networks, Entropy weighting method

Abstract

The relevance of this study stems from the imperative to discern the most investment-attractive green innovations in light of the global climate crisis, to ensure sustainable development, and to establish a systemically integrated international investment and environmental circuit. The purpose of this study is the objective identification and analytical structuring of priority green innovations with the highest investment potential, particularly in terms of attracting international capital and optimizing the functionality of global financial and environmental instruments. The research methods employed include the typology of green innovations, the computation of investment and environmental metrics, the formulation of the Green Innovation Investment Attractiveness Index (GIIAI), the evaluation of investment efficiency and conversion, a comprehensive assessment of international environmental interactions. Among the 15 green innovations analyzed, the top five (Photovoltaic Megaparks, Green Building Materials, ESG Scoring Platforms, MRV Systems, Smart Grid Energy Networks) were identified, achieving a GIIAI range of 0.85–0.92, investment mobilization of 77–85%, and ROI conversion rates of 0.77–0.83, with a Performance Index (PI) of 0.83–0.87. These innovations have facilitated comprehensive international environmental integration through Foreign Direct Investment (FDI), ESG Bonds, the UNFCCC, the Asian Infrastructure Investment Bank (AIIB), and Climate Fintech Funds, thereby confirming the strategic relevance and pivotal role of key drivers within global investment and environmental markets. Scientific novelty of this study lies in the development of a comprehensive indicator, the Green Innovation Investment Attractiveness Index (GIIAI), predicated on entropy weighting and normalized investment and environmental metrics, which substantiates the systemic allure of green innovations within the framework of international financial and environmental integration.

Downloads

Download data is not yet available.

References

Abd, A. A., Kim, J., & Othman, M. R. (2025). Bibliometric guide to future biogas technology for sustainable energy need and agricultural development. Clean Technologies and Environmental Policy, 27(11), 6031–6065. https://doi.org/10.1007/s10098-025-03242-5

Albert, A., Mousavi, M. M., Ibeji, N., & Owusu, F. B. (2025). Bridging ESG and fintech: A technological approach to carbon performance. Business Strategy and the Environment, 34(8), 10590–10612. https://doi.org/10.1002/bse.70122

Alharbi, S. S., Tabash, M. I., Farooq, U., & Issa, S. S. (2025). How does climate policy uncertainty determine green innovation adoption? New perspectives from the BRICS. The Journal of Economic Asymmetries, 31, e00411. https://doi.org/10.1016/j.jeca.2025.e00411

Argyriou, K., Marinelli, M., & Melissas, D. (2025). Exploring the integration of passive design strategies in LEED-certified buildings: Insights from the Greek construction sector. Buildings, 15(17), 3194. https://doi.org/10.3390/buildings15173194

Atstaja, D., Koval, V., Grasis, J., Kalina, I., Kryshtal, H., & Mikhno, I. (2022). Sharing model in circular economy towards rational use in sustainable production. Energies, 15(3), 939. https://doi.org/10.3390/en15030939

Cai, Y., Umair, M., Adam, N. A., Zhang, R., Mirzaliev, S., & Chang, C. (2025). Marketization as a catalyst: Understanding the impact of digital economies on green innovation in mainland China. Managerial and Decision Economics, 46(5), 2895–2910. https://doi.org/10.1002/mde.4509

Chen, Y., Chen, G., & Xu, W. (2025). Analysis of the impact of outward foreign direct investment of corporations on green innovation in the context of the Belt and Road Initiative. Sustainability, 17(9), 3773. https://doi.org/10.3390/su17093773

Chirico, F., Eddleston, K. A., & Patel, P. C. (2025). Does it pay to patent green innovations? Stock market reactions to family and nonfamily firms’ green patents. Journal of Business Ethics, 198(4), 947–970. https://doi.org/10.1007/s10551-025-05942-w

Chowdhury, M. O. S., & Talan, D. (2025). From waste to wealth: A circular economy approach to the sustainable recovery of rare earth elements and battery metals from mine tailings. Separations, 12(2), 52. https://doi.org/10.3390/separations12020052

Coussa, A., Gugler, P., & Reidy, J. (2025). Assessing the development of green innovation in China through patent evolution: The hallmark of government policy and private enterprises. International Journal of Emerging Markets, 20(8), 3362–3386. https://doi.org/10.1108/ijoem-09-2023-1512

Dvigun, A., Datsii, O., Levchenko, N., Shyshkanova, G., & Dmytrenko, R. (2022). Rational use of fresh water as a guarantee of agribusiness development in the context of the exacerbated climate crisis. Science and Innovation, 18(2), 85–99. https://doi.org/10.15407/scine18.02.085

Imanalieva, B., Orozalieva, B., Zholdoshova, Z., & Kopobaeva, Z. (2025). Assessment of the export potential of an industrial enterprise of the Kyrgyz Republic in a green economy. In AIP Conference Proceedings, 3290(1), 030016. https://doi.org/10.1063/5.0284885

Jassal, P. S., & Marak, J. S. R. (2025). Harnessing biotechnology for climate-resilient crop innovations. In Innovations in Climate Resilient Agriculture (pp. 257–270). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-84802-5_12

Ji, H., Yu, Z., Tian, G., Wang, D., & Wen, Y. (2025). Market competition, environmental, social and corporate governance investment, and enterprise green innovation performance. Finance Research Letters, 77, 107057. https://doi.org/10.1016/j.frl.2025.107057

Joshi, P., Rao, A. B., & Banerjee, R. (2025). Review of solar PV deployment trends, policy instruments, and growth projections in China, the United States, and India. Renewable and Sustainable Energy Reviews, 213, 115436. https://doi.org/10.1016/j.rser.2025.115436

Koval, V., Mikhno, I., Tamosiuniene, R., Kryshtal, H., Kovalenko-Marchenkova, Y., & Gui, H. (2023). Ensuring sustainable consumption behaviours in circular economy engagement. Transformations in Business and Economics, 22(2), 161–177. https://www.transformations.knf.vu.lt/59/article/ensu

Kovalko, O., Eutukhova, T., & Novoseltsev, O. (2022). Energy-related services as a business: Eco-transformation logic to support the low-carbon transition. Energy Engineering, 119(1), 103–121. https://doi.org/10.32604/ee.2022.017709

Kwilinski, A., Lyulyov, O., & Pimonenko, T. (2025). The role of innovation development in advancing green finance. Journal of Risk and Financial Management, 18(3), 140. https://doi.org/10.3390/jrfm18030140

Lai, H., Quan, L., Wu, F., Tang, S., Guo, C., & Lai, X. (2025). Corporate environmental publicity and green innovation: Are words consistent with actions? Humanities and Social Sciences Communications, 12, 514. https://doi.org/10.1057/s41599-025-04826-8

Li, C., Cao, X., Wang, Z., Zhang, J., & Liu, H. (2025). The impact of green bond issuance on corporate green innovation: A signaling perspective. International Review of Financial Analysis, 102, 104113. https://doi.org/10.1016/j.irfa.2025.104113

Li, L., Yong, H., & Zhang, Z. (2025). The impact of two-way foreign direct investment on industrial green development: Perspective of international cooperation on production capacity in China. Economic Change and Restructuring, 58, 25. https://doi.org/10.1007/s10644-025-09866-3

Liang, W., Yu, W., & Yao, X. (2025). Liberalization of upstream productive services and green innovation in downstream manufacturing firms: Evidence from China. Energy Economics, 142, 108173. https://doi.org/10.1016/j.eneco.2024.108173

Maghyereh, A., Boulanouar, Z., & Essid, L. (2025). The dynamics of green innovation and environmental policy stringency in energy transition investments. Journal of Cleaner Production, 487, 144649. https://doi.org/10.1016/j.jclepro.2024.144649

Mansoor, S., Iqbal, S., Popescu, S. M., Kim, S. L., Chung, Y. S., & Baek, J.-H. (2025). Integration of smart sensors and IoT in precision agriculture: Trends, challenges and future prospectives. Frontiers in Plant Science, 16, 1587869. https://doi.org/10.3389/fpls.2025.1587869

Masrub, E. H., Khalifa, E. M., & Elmashai, E. K. (2025). Green hydrogen technology for hyperloop railways transportations. In 2025 15th International Renewable Energy Congress (IREC) (pp. 1–5). https://doi.org/10.1109/irec64614.2025.10926764

Mia, M. M., Rizwan, S., Zayed, N. M., Nitsenko, V., Miroshnyk, O., Kryshtal, H., & Ostapenko, R. (2022). The impact of green entrepreneurship on social change and factors influencing AMO theory. Systems, 10(5), 132. https://doi.org/10.3390/systems10050132

Nguyen, N. T. T., Nguyen, P. V., Vrontis, D., & Vo, N. T. T. (2025). Enhancing organizational sustainable performance through green innovation: The roles of knowledge application, government policy, and green market orientation. Journal of Knowledge Management, 29(3), 870–890. https://doi.org/10.1108/jkm-06-2024-0688

Saputri, A. S., & Diswandi, D. (2025). The role of carbon market in net zero emission: Economic impact of carbon credit and forest conservation in Indonesia. Journal of Enterprise and Development, 7(1), 92–100. https://doi.org/10.20414/jed.v7i1.12792

Shen, J., Ridwan, L. I., Raimi, L., & Al-Faryan, M. A. S. (2025). Recent developments in green hydrogen–environmental sustainability nexus amidst energy efficiency, green finance, eco-innovation, and digitalization in top hydrogen-consuming economies. Energy & Environment, 36(1), 255–290. https://doi.org/10.1177/0958305x231153936

Thorat, D. S., Singh, S., Ushir, Y. V., Tiwari, K., Kokate, S., & Nagime, P. V. (2025). Biomaterials-based biofilters from sugarcane waste: An eco-friendly way to clean water and manage nutrients. Discover Materials, 5, 56. https://doi.org/10.1007/s43939-025-00234-6

Wang, C., Xie, X., Shuai, C., Ma, X., Wang, Z., Chen, Y., Chen, X., & Strezov, V. (2025). Influencing factors of green building practitioners’ competition perceptions: Evidence from China. International Journal of Construction Management, 25(4), 385–397. https://doi.org/10.1080/15623599.2024.2325752

Wei, T., Li, H., & Miao, J. (2025). Integration and development path of smart grid technology: Technology-driven, policy framework and application challenges. Processes, 13(8), 2428. https://doi.org/10.3390/pr13082428

Xiang, X., & He, X. (2025). Does cross-listing on the Hong Kong stock exchange affect Chinese firms’ green innovation? New evidence. Borsa Istanbul Review, 25(2), 323–336. https://doi.org/10.1016/j.bir.2025.01.003

Yan, Y., Li, Z., Zhang, Y., Wu, J., & Zhang, Y. (2025). The effects of foreign direct investment on green technology innovation: New evidence from China’s 278 cities. Emerging Markets Finance and Trade, 61(4), 940–963. https://doi.org/10.1080/1540496x.2024.2401476

Yang, F., Abedin, M. Z., Hajek, P., & Qiao, Y. (2025). Blockchain and machine learning in the green economy: Pioneering carbon neutrality through innovative trading technologies. IEEE Transactions on Engineering Management, 72, 1117–1139. https://doi.org/10.1109/tem.2025.3547730

Yi, M., Xu, L., Zhang, T., Ao, L., & Sun, M. (2025). The impact of foreign direct investment on green technology progress in China on two-carbon background: Taking trade openness into consideration. Frontiers in Environmental Science, 12, 1533146. https://doi.org/10.3389/fenvs.2024.1533146

Zhang, J., Yu, C.-H., Zhao, J., & Lee, C.-C. (2025). How does corporate digital transformation affect green innovation? Evidence from China's enterprise data. Energy Economics, 142, 108217. https://doi.org/10.1016/j.eneco.2025.108217

Zhao, J., & Sun, X. (2025). To what extent does it deviate from substantive green innovation: The effect of capital market opening on enterprises’ pseudo-green innovation. Applied Economics, 58(1), 55–68. https://doi.org/10.1080/00036846.2024.2448612

Zhao, Q., Fan, L., Chen, H., Yang, Y., & Wang, Z. (2025). Green innovation and carbon emission reduction: Empirical insights from spatial Durbin and dynamic threshold models. International Review of Financial Analysis, 101, 103997. https://doi.org/10.1016/j.irfa.2025.103997

Zhong, D., & Um, K.-H. (2025). How customer integration drives green innovation: Exploring the influence of regulatory pressures and market changes. Journal of Manufacturing Technology Management, 36(3), 731–754. https://doi.org/10.1108/jmtm-08-2024-0420

Downloads

Published

2026-04-30

Issue

Vol. 17 No. 1 (2026): Journal on Innovation and Sustainability

Section

Papers

License

This Journal is licensed under a Creative Commons Attribution-Non Commercial-No Derivers 4.0 International license.

1.The author (s) authorize the publication of the article in the journal;

2.The author (s) warrant that the contribution is original and unpublished and is not in the process of being evaluated in other journal (s);

3. The journal is not responsible for the opinions, ideas and concepts emitted in the texts, as they are the sole responsibility of its author (s);

4. The editors are entitled to make textual adjustments and to adapt the articles to the standards of publication.